B.C. Premier John Horgan and Attorney General David Eby announce plans for rate changes to ICBC Feb. 6. (Tom Fletcher/News Staff)

Budget 2020: ICBC ‘dumpster fire’ to turn into $86M surplus, NDP say

ICBC operating with $91-million deficit for 2019-2020 fiscal year

The B.C. government’s 2020 budget forecasts a shift from shortfall to surplus for ICBC after a recently announced plan to reduce rates and improve care.

The insurance corporation has carried its debt into the 2019-2020 fiscal year with a $91-million deficit. But that deficit follows two years with more than $1-billion dollar shortfalls.

READ ALSO: B.C. to reduce ICBC rates, further restrict people from suing

The province says it will remove lawyers and legal costs to reduce rates and increase medical care coverage, predicting an average savings of 20 per cent, or $400 per driver starting May 2021.

Those savings are predicted through the implementation of what some lawyers call a “no fault” system – reducing costly battles with personal injury lawyers by expanding the Civil Resolution Tribunal – a tribunal that’s already been handling smaller injury disputes.

The tribunal will expand to handle all ICBC disputes, a change expected to save the insurance company $1.5 billion in legal fees, courtroom experts and other related costs.

Premier John Horgan has rejected the notion that the change creates a “no fault system,” instead saying it re-prioritizes care while still allowing claimants to sue.

READ ALSO: ‘Fault matters’ at ICBC, injured people matter more, B.C. premier says

On Tuesday, Finance Minister Carole James said the government is “getting things back on track.”

“The enhanced care model is really focused on providing better care and making it so that people see a drop in their insurance rates,” she said.

The 2020 three-year fiscal budget predicts an $86-million surplus for ICBC in 2020-2021, with a steady incline over the following years – leading up to a $191-million surplus for 2022-2023.

– With files from Tom Fletcher.



nina.grossman@blackpress.ca

Follow us on Instagram
Like us on Facebook and follow us on Twitter.

B.C. Budget 2020budget

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Over 440 complaints issued in 3 months about Central Kootenay governments: B.C. Ombudsperson

Most common complaints were about decisions and bylaw enforcement in local governments

Trail medical lab makes changes amid pandemic

Rossland and Salmo clinics are not seeing immunocompromised or suspect/symptomatic patients.

New city hall, four-storey development proposed for Rossland

The building would include 37 affordable housing units

Deadline approaching for Rossland Museum and Discovery Centre request for proposals

Applicants have until April 10 to submit their proposals for the project

Selkirk College gives back during COVID-19 crisis

Staff have been delivering grocery items and medical supplies to those in need during pandemic

VIDEO: How doctors in Canada will decide who lives and dies if pandemic worsens

Officials in several provinces have been developing guides so that doctors don’t feel alone

Two people fined after B.C. police spot online ads re-selling 5,000 surgical, N95 masks

Police confiscated the masks, being sold at inflated prices, and now working with Fraser Health

General exposure to public low after inmate tests positive for COVID-19: Interior Health

The Okanagan Correctional Centre inmate is receiving appropriate care

Sex workers face new risks during COVID-19 pandemic

‘Desperation has kicked in’ for vulnerable, undocumented workers unable to access help

Unclear if Cowichan couple refusing to self-isolate will face penalty

No fines or charges have been laid to date, including Cowichan couple who won’t self isolate

COVID-19: Postponed surgeries will be done, B.C. health minister says

Contract with private surgical clinic to help clear backlog

Black Press Media ad sparks discussion about value of community newspapers

White Rock resident hopes front-page note shines light on revenue loss during COVID-19 crisis

Don’t stop going to the doctor, just do it virtually: B.C. association

Doctors encourage patients to access telephone, online visits

Most Read